October Outlook: Dow Jones, Nasdaq, S&P 500 Brace for Correction

The Dow Jones, Nasdaq, and S&P 500 experienced declines last week, with the S&P 500 recording its fourth consecutive weekly drop. Traders are entering the final quarter of 2023 with a focus on economic releases and the central bank narrative, particularly regarding inflation control. Treasury yields are shaping market sentiment, and upcoming U.S. economic data, along with speeches by Federal Reserve officials, will be closely watched. The Q3 earnings season is approaching, with a record number of S&P 500 companies issuing EPS guidance, and a majority of them providing negative guidance. Analysts expect market volatility but believe the broader uptrend in equities remains intact, presenting opportunities for investors.